KUALA LUMPUR: Integrated engineering solutions provider, Kelington Group Berhad (“Kelington” or “Group”) (stock code:0151) today reported its second quarter (“2Q2024”) and six months (“1H2024”) financial results ended 30 June 2024.
During the quarter, Kelington recorded a revenue of RM321.2 million, versus RM424.9 million in the preceding year’s corresponding quarter (“2Q2023”). The lower revenue was mainly due to several major projects in Singapore and Malaysia moving out of their accelerated phases and nearing completion.
However, a favourable project mix, with a higher proportion of revenue from higher-margin projects, led to a 20.6% increase in gross profit (“GP”) to RM55.5 million, up from RM46.0 million in 2Q2023. This improvement resulted in the Group’s GP margin rising to 17.3% in 2Q2024, compared to 10.8% the previous year.
Additionally, profit attributable to shareholders (“net profit”) increased by 39.9% year-over-year (“YoY”) to RM26.7 million for the quarter, compared to RM19.1 million in 2Q2023.
For 1H2024, Kelington achieved a net profit of RM51.5 million on the back of RM660.5 million in revenue. This marked a 46.1% increase from RM35.3 million in the corresponding period of the previous year (“1H2023”).
In terms of business segments, the Ultra High Purity (“UHP”) division remained the primary revenue contributor, accounting for RM427.6 million or 65% of the Group’s total revenue in 1H2024. Meanwhile, the Processing Engineering division and General Contracting division contributed RM38.8 million and RM128.2 million respectively, which made up 6% and 19% of Kelington’s 1H2024 total revenue.
The Industrial Gases division maintained its strong performance in 1H2024, with revenue rising 33% YoY to RM71.3 million, driven by elevated demand for liquid carbon dioxide (“LCO2”) from Oceania countries and increased sales of other gases.
Commenting on the Group’s financial performance, Ir. Raymond Gan, Chief Executive Officer of Kelington Group Berhad said, “We are proud of the solid results achieved in the first half of the year. As we look ahead, we remain confident in our growth trajectory, driven by our robust project pipeline and our active involvement in regional tenders. Our focus will be on maintaining this momentum and delivering value to our stakeholders.”
“Kelington is well-positioned for sustained growth, supported by key developments. In the first half of 2024, the Group secured new contracts totalling RM564 million, bringing the total outstanding order book RM1.29 billion as of 30 June 2024.”
“According to the SEMI World Fab Forecast report, the global semiconductor industry is significantly expanding production capacity to accommodate the growth of AI and various disruptive technologies. The report anticipates the launch of 103 new fabs between 2023 and 2027, presenting substantial opportunities for Kelington.”
As of 30 June 2024, the Group’s equity (excluding non-controlling interests) increased to RM396.4 million, up from RM332.6 million at the end of December 2023. This growth was driven by the exercise of warrants and consistent quarterly profits. The Group has proposed a second interim tax-exempt dividend of 2 sen per ordinary share for the financial year ending 31 December 2024 (“FY2024”), totalling RM13.6 million.
This brings the total dividend declared in FY2024 to 4 sen per ordinary share, equivalent to RM27.0 million. This represents a 52% payout of Kelington’s 1HFY24 net profit.
The Group’s balance sheet remains strong with a cash balance of RM334.1 million exceeding total debt of RM197.7 million as of 30 June 2024.
